20 June 2019
I have purchased a Truck and availed term loan from Cholamandalam finance with EMI. I have paid the dues as per the EMI only. In my audited profit & loss account I have claimed interest on Term loan for the assessment year 2013-2014. Now there is an audit objection from IT department that the assessee is failed to deduct TDS on interest paid to Cholamandalam. Pls. suggest what to do in this situation.
Since you have failed to deduct the tax on interest paid, you will be assessee in default. In this case, you can obtain a certificate from the payee that they have discharged the tax liability on the said income and also filed their return of Income. The said certificate has to be obtained in form 26A i.e Form for furnishing accountant certificate under the first proviso to sub-section (1) of section 201 of the Income-tax Act, 1961..
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